How will transactions of more than one buyer/seller be filed in Form 26QB – TDS on immovable property?

1)How many Form no: 26 QB should be filled online if Immovable Property is purchased by two buyers from two sellers i.e. one sale deed / agreement is in the name of two buyers from two sellers,

2) Should TDS be paid 25 % wise e.g., if property of Rs 60 lakhs is purchased then should TDS be 25%wise i.e. four Form no 26 QB should be filled & TDS be paid 25%wise?

Ans: Earlier there was confusion on this issue. However, this issue has now been clarified by Income Tax Department. In case of multiple sellers, Form 26QB needs to be filed for each seller separately. Similarly, in case of multiple buyers, each needs to issue Form 26QB separately.

Relevant FAQ on NSDL site is reproduced as under:

How will transactions of joint parties (more than one buyer/seller) be filed in Form 26QB?

Online statement cum Challan Form/ Form 26QB is to be filled in by each buyer for unique buyer-seller combination for respective share. E.g. in case of one buyer and two sellers, two forms have to be filled in and for two buyers and two seller, four forms have to be filled in for respective property shares.

 

 

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46 thoughts on “How will transactions of more than one buyer/seller be filed in Form 26QB – TDS on immovable property?

  1. Raj Thakor

    What is the answer for the 2nd part of the question? i.e. if 4 forms are to be filled, then the TDS amount that was deducted should be paid 25% for each form?

    For e.g. if Sale consideration = Rs. 6000000/- then TDS deducted = Rs. 60000/-. Now if there are 2 sellers and 2 buyers then 4 forms should be filled. However how much payment should be made against each form? Should it be 25% i.e. 15000/- for each form in this example?

    Please confirm.

    Reply
    1. IN

      Hi

      Did you get a response? 2 buyer and 2 seller. So property value in each form should be 0.25% correct?

      Regards

      Reply
  2. MUKESH CHOTIA

    WHAT WILL BE THE POSITION IN CASE THERE IS TWO BUYERS I.E. IN JOINT NAME OF HUSBAND AND WIFE AND ONLY ONE SELLER I.E. BUILDER. SHALL REQUIRED TO FILL TWO FORMS FOR 50% EACH. WHAT ACCOUNTING CODE BE SELECTED IF BUYERS ARE INDIVIDUAL AND SELLER IS CORPORATE.

    Reply
    1. Divya

      Code to be selected according to buyer not seller i.e.if buyer is Corporate assessee then it is 0020 and if buyer is other than corporate (Individual,HUF,Firm etc.) then it is 0021.

      Reply
      1. pranab

        Hi Divya, could you answer the first part of the question as well –
        WHAT WILL BE THE POSITION IN CASE THERE IS TWO BUYERS I.E. IN JOINT NAME OF HUSBAND AND WIFE AND ONLY ONE SELLER I.E. BUILDER. SHALL REQUIRED TO FILL TWO FORMS FOR 50% EACH.

        Seems like no one knows what should be when buyer and co buyer is husband and wife.

        Reply
  3. sanil

    I Want to make TDS payment on property sale property value is 60,00,000 and Single buyer but seller 2 persons and percentage of share is 60:40
    kindly advice how to make tds payments and respective forms

    Reply
  4. P. CHANDRA MOHAN RAO

    I have purchased one property (buyer)of Rs 1,45,00,000/- but sellers are 4 members, (Consideration) one seller is 5500000 second seller is 65,00,000 third seller is 15,00,000 and fourth seller is 10,00,000. In this connection how to deduct the 1% of tds on property. Please

    chandramohan

    Reply
    1. shyam sunder agarwal

      hello friends
      I am also facing Same problem. As per per my opinion if one purchaser and seller are 4 then we have to file four 26QB form with respective share of amount in property.

      e.g. I Purchased a property of Rs. 70,00,000 from three vendor. and make payment to each vendor 35,00,000 and 17,50,000 and 17,50,000 then I will file three 26QB for each vendor with their PAN, TDS deducted on them with their respective amount.
      I think I will deduct TDS 35000 and 17500 and 17500 respectively. then file Form 26QB.

      Am I Right. Please comment

      Reply
      1. NIkunj Bhanushali

        To mr. shyam sunder agarwal
        have you got answer of your quation as i am also facing same problem.
        If you got then please share me that info.

        Reply
  5. Rupali

    I have purchased a flat in joint name from single seller. The amount paid is 90L. Now since I have to submit two forms ( because of 2 buyers), what value should each form show? 45 L or 90L. and Tax as 45,000/- each or both of us show property value as 90L and TDS 45000/-. Please advise

    Reply
  6. Thina

    TDS should deducted only if property value is more than 50 lakhs. If seller is 5 person and buyer is 1 person then he is buying 5 property so each seller is selling for 10 lakhs only. My question is whether TDS should be deducted for 10 lacs?

    Reply
  7. MANISH SHAH

    (1) i have by property at rs.25100000 from three(3)sellers i.e. 83,66,666/- and deduct total tds of rs.251000 (i.e. 1%) i have deduct tds sepretly for each sellar i.e 83666/- 83666/- & 83668 so,i can make made 26qb for each i.e. total value83,66,666 & tds 83666/- i am right pl.answer imediatly because this is ending of march.
    (2) and 2 issue i am not deducting tds for purchase onther property so i am liable for any penalty & interest & how much.(%) & (rs.)

    Reply
  8. Shubham Deshpande

    What is the total consideration for property to be entered in form 26QB?
    a) The Agreement value
    b) Your share in property
    c) Total Consideration paid/payable by you and not the other buyers

    In what ratio are you supposed to pay TDS in case ownership ratio is not mentioned in the agreement?
    a) Completely by first owner
    b) Equally
    c) In the ratio consideration is paid

    Reply
  9. sarang

    I plan to buy flat amounting 5500000 (2 buyers + 2sellers) In ‘amount Paid/Credited’ should I break the toatal amount in 4 equal parts and make TDS payment. please confirm.

    Reply
  10. p c agrawal

    WHAT WILL BE THE POSITION IN CASE THERE IS TWO BUYERS I.E. IN JOINT NAME OF HUSBAND AND WIFE AND ONLY ONE SELLER I.E. BUILDER. DO WE NEED TO FILL TWO FORMS FOR 50% EACH?

    Reply
  11. Sunny Ganwani

    I have purchased property in joint name of me and my wife. Sale consideration Rs. 1,70,00,000/-. But I have submitted single Challan only as there is only one seller. Will there be any problem in future?

    Moreover, I have deposited the full tax amount and not escaped anything from Income Tax Department.

    Please Advice.

    Thanking You,

    Reply
    1. Sandeep

      Hello Sunny I have similar problem and now I have got notice from IT department. Did you find a solution to this issues?
      Do let me know.
      Thanks.

      Reply
      1. Anurag Sharma

        Hi Sunny/Sandeep,
        I am also in similar boat. I have property in joint name of me and my wife but i have submitted only single challan so far for each installment.

        Is your issue resolved now ? Please suggest me if there are solutions for same.

        Thanks

        Reply
  12. RAVI CHOPRA

    if there are 4 buyers and 5 seller than please tell me no. of form 26 QB to be issued and procedure for each buyers for filling form 26QB

    Reply
  13. Sanjay

    Dear Sir,

    I have purchased a flat in joint name of me and my wife. The payment for the flat is done from my single account. In this case please advise how the TDS deduction will be done for both buyers.

    Thank you

    Sanjay

    Reply
  14. Rocky

    Hello Sir,

    I have a query, I recently purchased a property of 50Lacs on my name. My father helped me with 25Lacs by selling his old property. Now I would like to know, will there be any TAX liability on my father, if so, is there any work around for the same.

    Thank you

    Rocky

    Reply
  15. Sonam Goel

    The Assessee purchased property in joint name with his spouse for sale consideration of Rs. 55.00 lacs and sellers were also two persons jointly. TDS Liability u/s 194 IA (Rs. 55000/-) was paid. But assessee, inadvertently, deposited TDS amount with details of one seller only. Technically speaking, 26QB will be required with details of both sellers and both buyers, resulting in more than one challan/ return.
    Department has issued a notice in the matter that one of buyer has not furnished details as to Form 26QB and it will attract penal provisions.
    There are no such cases as to answer this issue. There is no loss to revenue. Should we approach jurisdictional assessing office for correction or some other measures are available under four corners of law.

    Reply
    1. Alok Jha

      I bought a property, say for example 1 cr and till now paid 70% of the property. Say 70 lakh as its an under construction apartment.
      Me and my wide are the joint owners for this property, so far I paid 1% TDS (that is 70,000) on time but only filled one 26QB form.
      I understand this that I should have filled two seperate 26QB and paid 35,000 rs for both the owners (me and my wife).
      But now since that mistake is done my question is what should I do to correct this ?
      Also, for the remaining 30%, I am planning to file two separate 26QB for me and my wife, but since 70% will have just one 26QB and remaing 30% will would be by both me and my wife, would that be an issue later ?
      Please suggest.
      Thanks
      Alok

      Reply
  16. vinoth

    If there are 2 buyers(hub and wife) and 1 seller and i split and make a delayed TDS payment in 50:50 proportion using 2 challans..
    1,how these 2 buyers are linked in the system as they share the same property . there is only one field in form26QB which just asks whether there are more buyers . other than that i do not see any way to track if 2 or more buyers are sharing the same property …

    2, since there are 2 TDS paid using 2 different challans on the same day as there are 2 buyers and lets assume the delay is 10 days will each buyer have to pay a late fee of 200×10 = 2000 ? will each buyer get a notice to pay 2000 each in this scenario. if so multiple buyers will double or triple the penalty for the same TDS amount.

    Reply
  17. Sweta

    Hi,

    I have bought my apartment in joint ownership with my father, but all payments are made by me. We added his name in case of any urgent signs needed when I am not around (I am not in India).

    My question is, can I pay TDS all through my account? The language seems to suggest that the person responsible for paying is the one who has to cut the TDS.

    “Any person, being a transferee, responsible for paying …. to a resident transferor …”

    Thanks for your help in advance.

    Reply
  18. Manish

    My Clint purchase a property above 50 lacks
    Buyer 6person and seller 6 person how many 26qb form fill up each buyer’s

    Reply
    1. CHETAN SATISH MARATHE

      36 nos. of FORM 26QB should be filed by all buyers. In the instant case 6 form 26QB should be filed by each Buyer.

      Reply
  19. jaiprakash

    i had made a purchase 60 lakh property. there are 3 seller. and the payment has been done to single seller. And the seller is asking to deduct the TDS on sigle name.
    Is it possible. PLS ADVICE

    Reply
  20. Sanjay

    My client purchase an apartment in 8400000/=. In joint name with his spouse. He is paying all amount from his account. Wife has no source of income. There are two sellers husband and wife’. How many 26qb forms required?

    Reply
  21. Nitin Patil

    How do I fill the 26QB if there are 2 sellers with share in Property @ 85% and 15% each and if there are 2 buyers with share in property of 50% each.
    Please advise.

    Reply
  22. sanjay r mehta

    What is the total consideration for property to be entered in form 26QB?
    a) The Agreement value
    b) Your share in property
    c) Total Consideration paid/payable by you and not the other buyers

    In what ratio are you supposed to pay TDS in case ownership ratio is not mentioned in the agreement?
    a) Completely by first owner
    b) Equally
    c) In the ratio consideration is paid

    Reply
  23. JOJO

    I am purchasing a property for rs.7600000/-(rs. seventy six lakhs) from 3 brothers with separate documents each of rs.2533000/-. Will the tds comes into play as the individual consideration is below threshold of 50 lakh.

    Reply
  24. Shantu

    I have purchased a flat in joint name from single seller. The amount paid is 52L. Now since I have to submit two forms ( because of 2 buyers), what value should each form show? 26L or 52L. and Tax as 52000/- each or both of us show property value as 52L and TDS 45000/-. Please advise

    Reply
  25. Kamal

    I have deposited Rs 65000 through a single challan instead of Rs 32500 for each seller.

    I have submitted correction request on traces website where I corrected the amount for one seller but it doesn’t have any option to split the amount of the challan between 2 buyers and 2 sellers.

    Kindly guide me how can it be corrected.

    Reply
  26. GIRDHARI AGRAWAL

    Can you please clarify that if the stamp duty value of the property is more than Rs 50 Lacs and Sales Consideration is less than Rs 50 Lacs, whether this section will be applicable.

    Reply
  27. Krishna Kumar Verma

    In my case we have 2 buyers (wife – main applicant and husband – co-applicant) and one seller. I paid full TDS of 1% through Husband detail only to the seller. Will it valid? No concern from any of the party but want to know is it valid if i am not paying anything for main applicant – wife

    Reply
  28. srikanth_indavar@hotmail.com

    Everytime when the government departments, especially in the tax related matters, the common man is forced to undergo multiple thoughts and the person who has advised or made the rule will not think of consequences. The person who made the rule will ALWAYS be absconding and leave the matter open-ended.

    Reply

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